1 / 22

Pricing Products Partly Based on Ebert & Griffin Chapter 11

Pricing Products Partly Based on Ebert & Griffin Chapter 11. For My Friends in BSAD 101 By Thomas Hilton. Key Topics. Pricing objectives Price-setting tools Pricing strategies and tactics Cost-Justifying Information Systems. Pricing to Meet Business Objectives.

wright
Download Presentation

Pricing Products Partly Based on Ebert & Griffin Chapter 11

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pricing ProductsPartly Based on Ebert & Griffin Chapter 11 For My Friends in BSAD 101 By Thomas Hilton

  2. Key Topics • Pricing objectives • Price-setting tools • Pricing strategies and tactics • Cost-Justifying Information Systems

  3. Pricing to Meet Business Objectives • Profit maximizing objectives • Market share objectives

  4. Price Setting Tools Cost Oriented Pricing Breakeven Analysis

  5. Breakeven Analysis Figure 11–1

  6. Pricing Strategies • Pricing existing products • Pricing new products • Price skimming • Penetration pricing • Pricing e-commerce products • Dynamic vs. fixed

  7. Pricing Tactics • Price lining • Psychological pricing • Odd-even pricing • Discounts

  8. Justifying I.S. Projects • Why Develop Information Systems • Cost-Justification • Non-cost Justification

  9. Why Develop Information Systems? • Information is the intended output • Data is the main input • Is there a difference? • There had better be!

  10. Data: Objective Measures of Traits of Real-World Objects • Objective • Not subjective • Replicable • Measures • Values • Quantitative • Qualitative • Traits • Characteristics • Attributes • Real-World Objects • Entities or Classes • Tangible • Intangible

  11. Information: Data Aggregated and Placed in a Useful Context • Context • Titles • Labels • Rows • Columns • Usefulness • Decision-Making • Judged by User • Data • see prior • Aggregation • Groups • Calculations • Manipulations

  12. Information Quality Six Traits • Accuracy • Timeliness • Relevance • Verifiability • Accessibility • Security

  13. Cost-Justification • “Is the system worth its cost?” • Compare “worth” with “cost” • Various Methods • ROI • Present Value • Cost-Benefit Analysis

  14. Cost-Benefit Analysis Conceptually Simple • Quantify all Costs • Quantify all Benefits • Divide Costs by Benefits • If C/B Ratio < 1, then Proceed

  15. Cost-Benefit Analysis Complex in Practice • System Lifespan • Tangibles vs. Intangibles • Future Orientation

  16. Costs People Facilities Supplies Data Hardware Software Training Procedures Opportunities Confusion

  17. Benefits • Cost Shifting • Inventory • Labor • Debt • Profit Generation • Product • Service • Cost Elimination • Worker • Process • Carrying Cost • Cost Reduction • Efficiency • Productivity • Maintenance

  18. Cost-Benefit Analysis Table

  19. An Example Network Design Proposal

  20. Non-Cost Justifications • Cost-benefit analysis is not iron-clad • Often, detractors can discredit it • Therefore, it must be accompanied by non-cost justifications • Organizational culture • Strategic direction • Potential competitive advantage • Environmental Imperatives • Top Management Support

  21. Review • Putting a Price on Information involves • Objectives: Profit? Market share? • Strategies: Existing? New? E-Commerce? • Tactics: Price-lining? Psychological? Discounts?

  22. Now You Do It! • Cost-justify an information system of your choice using the CBA table in this presentation • Email it to me within 10 days

More Related